SPF Re-Applies For Re-Privatization Of Chornomorsky Shipbuilding.

The State Property Fund (SPF) asked the Mykolayiv Oblast Economic Court to cancel an agreement on the purchase of the company by the Mykolayiv Small-Tonnage Shipyard (controlled by the Churkin brothers, who also own the Lviv Bus Plant).  This is the second time the SPF has tried to have the privatization agreement ruled void, however last year the court did not find in favor of the SPF’s request. Following the first ruling in March, the Mykolayiv Oblast Prosecutor’s office asked the Economic Court to cancel the purchase the agreement, citing violations in the course of privatization and the new owners failure to live up to their contractual obligations, however, no decision has been announced yet. Chornomorsky Shipbuilding increased its net revenues by 109.6% in 2004 to USD 41.2 mln, and posted a net income of USD 35.2 mln, a complete turnaround from a USD 4.4 mln net loss in 2003.